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HCL Technologies sees revenue growth at 9.5-11.5% in FY19; 7 key takeaways

IT firm HCL Technologies on Tuesday reported a 16.10 per cen..

IT firm HCL Technologies on Tuesday reported a 16.10 per cent year-on-year rise in consolidated profit at Rs 2,540 crore for September quarter. It had posted a profit of Rs 2,188 crore in the same period last year.

The companys revenue jumped 19.50 per cent to Rs 14,861 crore during the quarter under review against Rs 12,434 crore in the same period last year.

"We continued to deliver strong and consistent quarter-on-quarter revenue and margin growth performance. We remain confident of retaining this growth trajectory going forward," C Vijayakumar, President and CEO of HCL Technologies, said in a release.

In dollar terms, the bottomline of the company jumped 5.1 per cent YoY to $356.70 million in September quarter, while topline increased 8.9 per cent at $2098.60 million.

Here are key takeaways from the Q2 earnings:

Dividend: HCL Technologies board has recommended a dividend of Rs 2 per share. This was also its 63rd consecutive quarter of the payout.

Guidance: The company believes that FY19 revenue to grow at 9.5-11.5 per cent in constant currency basis.

Headcount: Total employee count jumped to 1,27,875 in Q2FY18 against 1,24,121 in June quarter and 1,19,040 last year.

Clients: Client Partner Program continues to drive strong growth with new additions on YoY basis with $50 plus million clients up by six, $20 plus million clients up by six, $10 plus million clients up by eight, $5 plus million clients up by 10 and $1 plus million clients up by 39.

Strong deal win momentum continues: The company signed 17 transformational deals reflecting a mix of Mode 1 and Mode 2 services led by Digital & Analytics, Cloud Native, IoT Works, Cybersecurity, along with Infrastructure. Mode 3 revenues achieved the milestone of $ 1bn on annual run rate basis.

Total funds: As of September 30, the company had total funds of $1,594 million which includes $218 cash and cash equivalents, $763 fixed deposits and $613 investment securities. However, borrowing stood at $424 million.

Management-speak: Shiv Nadar, Chairman & Chief Strategy Officer, HCL Technologies Ltd said: “Technology continues to be at the center stage of enterprise digital transformation and all forward-looking companies are using it to differentiate in the marketplace. HCL with its deep capabilities and innovation mindset along with our commitment towards CSR, diversity and inclusion remains at the forefront of this changing industry dynamic.”

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